Ontario sets export fee on electricity, cautions possible cessation amid Trump's tariff threats
The rising tensions occur amid President Donald Trump's attempt to leverage trade to enhance border enforcement.
TroibNews 
Ontario implemented a 25 percent price increase for electricity exports to three northern U.S. states on Monday, with Premier Doug Ford cautioning that he may completely halt power flows if President Donald Trump continues his tariff threats.
“Let me be clear, I will not hesitate to increase this charge, if necessary,” Premier Doug Ford said. "If the United States escalates, I will not hesitate to shut the electricity off completely."
The surcharges were imposed as Ford had pledged last week in reaction to Trump’s announcement of extensive tariffs affecting Canada and Mexico. This action proceeded despite the White House announcing a pause in its tariff plans. The increases will affect 1.5 million residents in Minnesota, Michigan, and New York, raising concerns from state officials about potential impacts on grid reliability.
The new surcharge for electricity exports stands at C$10 (approximately $7 in U.S. currency) per megawatt-hour, and Ford estimated that this increase could raise household power bills by $100 monthly in those states, costing each state $400,000 daily.
In related news, The Globe and Mail reported that Quebec's provincial government is contemplating stopping hydropower exports to the U.S. Northeast and evaluating options regarding future supply contracts with Massachusetts and New York that are set to commence in 15 months.
Ford reiterated that he will not ease the trade tensions until the threat of U.S. tariffs is completely removed.
“Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” he stated on Monday. “We will not back down. Pausing some tariffs, making last minute exemptions — it won't cut it. We need to end the chaos once and for all.”
White House spokesperson Kush Desai criticized Ontario’s decision in an email.
“Instead of retaliation, Canada should focus on shoring up border security and cracking down on the drugs that are killing tens of thousands of Americans every year," Desai said.
Democratic Minnesota Governor Tim Walz took to Bluesky to express his concern for Minnesotans burdened by rising power bills, calling them "the first victims of Trump's trade war."
"Minnesota cannot afford Trump’s billionaire-run economy. We have to put a stop to this madness," he wrote.
New York Governor Kathy Hochul, also a Democrat, condemned the tariffs in a statement, describing them as "poorly conceived from the start."
“This is a textbook example of bad public policy and I’m calling on President Trump to immediately rescind his tariffs before they inflict further damage on working families — and if he won’t act, Congress must," she stated. "The people of New York deserve transparency and accountability. We will not allow President Trump and Congressional Republicans to play politics with our energy security while hardworking New Yorkers foot the bill.”
Hochul and Senate Minority Leader Chuck Schumer additionally sent a letter to the state's utility regulators on Monday, urging "an urgent review to ensure transparency on the real cost to consumers."
A statement from the Michigan Public Service Commission, which oversees the state's utilities, conveyed concern about the impact of the new fee on consumer power bills, while emphasizing greater apprehension regarding grid reliability.
"While the vast majority of Michigan’s electricity is either produced by the electric utilities or purchased under long-term power contracts, the imposition of these tariffs could have some impact on prices in the regional energy markets, though the ultimate impact on Michigan customers is likely to be small," the statement noted. "Of greater concern is the stability of the electric grid. There are significant flows across the border because of the interconnected grids between the two countries."
The commission warned that any disruptions to these flows could make the Canadian and U.S. grids "more vulnerable to grid-scale outages."
The New York Independent System Operator is currently assessing the tariffs' impact, according to their statement.
Navid Kalantari for TROIB News
“Let me be clear, I will not hesitate to increase this charge, if necessary,” Premier Doug Ford said. "If the United States escalates, I will not hesitate to shut the electricity off completely."
The surcharges were imposed as Ford had pledged last week in reaction to Trump’s announcement of extensive tariffs affecting Canada and Mexico. This action proceeded despite the White House announcing a pause in its tariff plans. The increases will affect 1.5 million residents in Minnesota, Michigan, and New York, raising concerns from state officials about potential impacts on grid reliability.
The new surcharge for electricity exports stands at C$10 (approximately $7 in U.S. currency) per megawatt-hour, and Ford estimated that this increase could raise household power bills by $100 monthly in those states, costing each state $400,000 daily.
In related news, The Globe and Mail reported that Quebec's provincial government is contemplating stopping hydropower exports to the U.S. Northeast and evaluating options regarding future supply contracts with Massachusetts and New York that are set to commence in 15 months.
Ford reiterated that he will not ease the trade tensions until the threat of U.S. tariffs is completely removed.
“Until these tariffs are off the table, until the threat of tariffs is gone for good, Ontario will not relent,” he stated on Monday. “We will not back down. Pausing some tariffs, making last minute exemptions — it won't cut it. We need to end the chaos once and for all.”
White House spokesperson Kush Desai criticized Ontario’s decision in an email.
“Instead of retaliation, Canada should focus on shoring up border security and cracking down on the drugs that are killing tens of thousands of Americans every year," Desai said.
Democratic Minnesota Governor Tim Walz took to Bluesky to express his concern for Minnesotans burdened by rising power bills, calling them "the first victims of Trump's trade war."
"Minnesota cannot afford Trump’s billionaire-run economy. We have to put a stop to this madness," he wrote.
New York Governor Kathy Hochul, also a Democrat, condemned the tariffs in a statement, describing them as "poorly conceived from the start."
“This is a textbook example of bad public policy and I’m calling on President Trump to immediately rescind his tariffs before they inflict further damage on working families — and if he won’t act, Congress must," she stated. "The people of New York deserve transparency and accountability. We will not allow President Trump and Congressional Republicans to play politics with our energy security while hardworking New Yorkers foot the bill.”
Hochul and Senate Minority Leader Chuck Schumer additionally sent a letter to the state's utility regulators on Monday, urging "an urgent review to ensure transparency on the real cost to consumers."
A statement from the Michigan Public Service Commission, which oversees the state's utilities, conveyed concern about the impact of the new fee on consumer power bills, while emphasizing greater apprehension regarding grid reliability.
"While the vast majority of Michigan’s electricity is either produced by the electric utilities or purchased under long-term power contracts, the imposition of these tariffs could have some impact on prices in the regional energy markets, though the ultimate impact on Michigan customers is likely to be small," the statement noted. "Of greater concern is the stability of the electric grid. There are significant flows across the border because of the interconnected grids between the two countries."
The commission warned that any disruptions to these flows could make the Canadian and U.S. grids "more vulnerable to grid-scale outages."
The New York Independent System Operator is currently assessing the tariffs' impact, according to their statement.
Navid Kalantari for TROIB News
